#1 Answer to the Housing Shortage: New Construction

The biggest challenge to today’s housing market is the shortage of housing inventory for sale. A normal market would see a six-month supply of homes for sale. Currently, that number is below four months. This is the major reason home prices have continued to appreciate at higher levels than historic averages.

The good news is that builders are now starting to build more homes in lower price ranges.

Builder Confidence is Up

The Housing Market Index from the National Association of Home Builders (NAHB) reveals that builder confidence increased last month. HousingWire quoted NAHB Chief Economist Robert Dietz about the reason for the increase in confidence amongst builders.

“The HMI measure of future sales conditions reached its highest level since June 2005, a sign of growing consumer confidence in the new home market. Especially as existing home inventory remains tight, we can expect increased demand for new construction moving forward.”

Builders are Meeting the Needs of Today’s Purchaser

Builders are not only jumping into the market – they are doing a better job of matching current demand. The Wall Street Journal recently reported:

“In a shift, new households are overwhelmingly choosing to buy rather than rent. Some 854,000 new-owner households were formed during the first three months of the year, more than double the 365,000 new-renter households formed during the period, according to Census Bureau data.”

The WSJ article went on to say:

“Home builders are beginning to shift their focus away from luxury homes and toward homes at lower price points to cater to this burgeoning millennial clientele.”

The graph below compares 2016 to 2017 new construction sales by price point. As we can see, builders are slowly beginning to shift to prices more favorable to the first-time and non-luxury buyer.

#1 Answer to the Housing Shortage: New Construction | Simplifying The Market

Bottom Line

There is a drastic need for a larger supply of home inventory to meet the skyrocketing demand. Builders are finally doing their part to help rectify this situation.  If you are exploring the real estate market for a new build or a resale home, give me a call for more information – J.P. Cook – 602-320-4253.

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6485 E Heritage Road Florence, AZ 85132

$630,000
3 Beds
3 Baths
2,255 SqFt
Status Active
MLS # 6763202
Property Type Single Family Residence
Price Type --
HIDDEN OASIS! AFFORDABLE ONE-OF-A-KIND HORSE PROPERTY that is fully fenced with block wall & gated with a Beautiful 2-story SEMI-CUSTOM HOME with NO HOA! 1.27-acre lot. 3 Car Garage Slate flooring, Granite countertops in kitchen, laundry room, & bathroom vanities. Custom hickory wood cabinets and soaring vaulted ceilings. FLEX Room & Master bedroom on main floor with 2 bedrooms upstairs. Master bedroom bath has granite double sinks, separate tub from shower. Large walk-in Closet in Master with vaulted ceilings. Guest bath is off the dining area. Full Bath upstairs. AC Units. Huge backyard with beautiful mature trees. Enjoy the stunning Arizona Sunsets from your large, covered patio. 4 horse stalls, enclosed tack/feed shed, & huge horse area separated from backyard by block wall. Huge unfinished room over the 3-car garage could be made into a family room, additional bedrooms, endless possibilities! Access door could be made thru up-stairs bathroom. Access to it right now is through the crawl space in the kitchen.

9929 E Timpani Lane Mesa, AZ 85212

$630,000
4 Beds
2.5 Baths
2,264 SqFt
Status Active
MLS # 6770757
Property Type Single Family Residence
Price Type --
Wecome home. This home offers a great room, dining space and kitchen with large center island, an ideal layout for having friends and family over and entertaining. A covered patio offers additional outdoor living space to enjoy those cooler evenings. Fall in love with the sophisticated owner's suite boasting an owner's bathroom with dual sinks and walk-in closet. There is also a second living area by the foyer that is perfect for the kids to hang out at. This Cadence community offers amenities including a play pool, water slides, etc. This place has it all!

6381 W Kristal Way Glendale, AZ 85308

$630,000
4 Beds
2 Baths
2,313 SqFt
Status Active
MLS # 6768457
Property Type Single Family Residence
Price Type --
Looking for a great property and great location? This is the one that you are looking for! This 4 bedroom, 2 bath single story ranch style home offers hardwood and tile flooring in all living space areas, carpeting in all the bedrooms for your comfort. Kitchen and baths have been remodeled and updated with white cabinetry and black quartz counter-tops and kitchen island. Large pantry in the kitchen to fit all of your kitchen gadgets and food storage is a wish fulfilled for every home cook. This home is handicap friendly as there are two walking showers and wider doors, the home was adjusted to be used as an Assisted Living. The location is in close proximity to Abrazo Arrowhead Campus, near Midwestern University, close to 101 FWY and Arrowhead Mall.

7833 E Obispo Avenue Mesa, AZ 85212

$629,999
4 Beds
2 Baths
2,532 SqFt
Status Active
MLS # 6775630
Property Type Single Family Residence
Price Type --
NEWLY RENOVATED ON A MASSIVE CORNER LOT! Home features 4 beds + a dedicated office space perfect for working from home and 2 full baths. A newly renovated kitchen with modern finishes! Oversized primary bedroom with completely remodeled bathroom! 12,000+ square foot lot with beautiful surrounding views and a sparkling pool! New interior and exterior paint! So many recent upgrades, come see it today because it won't last long!

28903 N 211th Avenue Wittmann, AZ 85361

$629,999
5 Beds
3 Baths
2,681 SqFt
Status Active Under Contract
MLS # 6717920
Property Type Single Family Residence
Price Type --
Don't miss out on the opportunity to make this stunning property with NO HOA your own! This newly constructed home on 1-acre horse property offers the perfect blend of luxury and functionality. Open spacious floor plan and design the gourmet kitchen awaits, adorned with pristine white shaker cabinets and granite countertops. Tile flooring flows seamlessly throughout the entire home, offering both durability and timeless beauty. Beautiful Custom Home nearing completion! This home was built with care & quality!! Numerous details & upgrades throughout, not just cosmetically but through the bones of this home.

17375 N 10th Street Phoenix, AZ 85022

$629,999
3 Beds
2.5 Baths
2,610 SqFt
Status Active Under Contract
MLS # 6766700
Property Type Single Family Residence
Price Type --
Take pride in residing in this highly upgraded home in Villas at Trellis! Appealing interior boasts clean lines that promote a modern feel! Abundant natural light graces the open floor plan paired w/hardwood flooring, crown moulding, surround sound, & wide sliding glass doors to the back patio. Lovely kitchen provides recessed & pendant lighting, SS appliances, ample cabinetry, subway tile backsplash, a pantry, & a butcher block prep island w/a breakfast bar. Make the flexible den & loft a study or TV area. HUGE main retreat offers plush carpet & an ensuite comprised of two vanities, make-up desk, large shower w/a drying area, & a walk-in closet. Fabulous backyard comes w/a covered patio perfect for relaxing or throwing a barbecue and enough space for fun get-togethers. Don't miss it!

24021 N 172nd Avenue Surprise, AZ 85387

$629,995
4 Beds
3.5 Baths
2,840 SqFt
Status Active
MLS # 6732025
Property Type Single Family Residence
Price Type --
Welcome Home! Darius plan provides a sophisticated and accommodating plan for livability that checks all the boxes on your wish list. In addition to a lavish owner's suite—with a roomy walk-in closet and attached double-sink bath—this home includes a second owner's suite with an adjacent living room, perfect for multi-generational living. You'll also enjoy a 3-car garage, a study, a great room with a covered patio featuring a multi slide door to bring the outdoor living indoors. Inviting gourmet kitchen with a generous island, dining nook for all entertaining gatherings! Airy 10 ft ceilings ,desired jack and jill bathrooms and so much more! This home sits on an oversized cul-de-sac lot.

8125 W Gardenia Avenue Glendale, AZ 85303

$629,995
5 Beds
3 Baths
2,611 SqFt
Status Active
MLS # 6760893
Property Type Single Family Residence
Price Type --
Experience modern comfort in this beautifully updated 5-bedroom, 3-bath home, featuring new carpet and fresh paint throughout. With two master suites, this home is perfect for multi-generational living or accommodating guests. The spacious kitchen boasts granite countertops, abundant cabinetry, a pantry, and a large island—ideal for both cooking and gathering. The main master suite offers a spa-like experience with dual sinks, a separate soaking tub, a shower, and a walk-in closet. Designed for entertaining, the open floor plan flows effortlessly, and the expansive nearly 20,000 sq ft lot, complete with pool, offers endless possibilities for outdoor living, recreation, or relaxation.

25388 N 76th Drive Peoria, AZ 85383

$629,990
4 Beds
3 Baths
2,150 SqFt
Status Active
MLS # 6704857
Property Type Single Family Residence
Price Type --
Brand new community in North Peoria! This stunning single story home offers 2,150 sq ft of functional living space. It features 4 bedrooms, 3 bathrooms, den, and a 3 car tandem garage. The open concept kitchen is perfect for entertaining and features a large Island, walk-in pantry and stainless steel appliances. It also offers our Coastal Design Palette which includes Fairview White Painted 42'' Cabinets, Crisp Stria Quartz kitchen countertops, Zelige Cielo 4x4 kitchen backsplash, and 6x36 wood looking plank tile in all the common areas. The great room offers a 4 panel center sliding glass door so you can step out into your covered patio to enjoy indoor/outdoor living in your backyard with friends and family. Great location close to dining, freeways, parks, and entertainment!

25931 N 23rd Avenue Phoenix, AZ 85085

$629,990
3 Beds
2.5 Baths
1,976 SqFt
Status Active
MLS # 6758025
Property Type Single Family Residence
Price Type --
Welcome to the Peralta plan, offering 1,992 square feet of elegant living space with a charming Farmhouse exterior. As you step onto the pavers at the covered entry and into the home, the paint grade mission stair rail adds a touch of traditional craftsmanship while the 8' interior doors adorned with matte black door hardware. This home's kitchen and great room open up to a spacious outdoor space with a gas stub for BBQ, ensuring the possibilities of effortless outdoor entertaining. The heart of the home, the kitchen, features stainless steel GE appliances including an under-cabinet hood, a built-in gas cooktop with five burners, and a built-in wall oven and microwave with trim kit. The kitchen features white painted shaker cabinets featuring 42'' uppers and 3'' crown at the perimeter. The kitchen countertops are adorned with Della Terra slate grey quartz which are complimented by the Dal Tile - Brickworks 2x8 backsplash. A large single basin stainless steel sink with a Moen Spring kitchen faucet completes this chef's dream kitchen. All bathrooms and the kitchen feature two-tone black and champagne bronze cabinet pulls. Moen Gibson 8 widespread matte black premium finish faucets offer a beautiful contrast to the white cultured marble countertops with rectangular sinks. Throughout the downstairs and in bath 2 and the laundry upstairs, you'll find durable Dal Tile Hill House Natural 6x36 wood look tile, while the primary bathroom boasts AZ Tile Reside Matte Beige 12X24 tile. The primary bath also features an enlarged primary bath shower, perfect for unwinding after a long day. Moving upstairs, Shaw Kennfield carpet in the shade Ecru providing comfort and warmth. All flooring is elegantly trimmed with upgraded 4 ¼ baseboards. This home is complemented by a soft water loop located in the garage for added convenience. Union Park offers Tree-lined streets, pedestrian-friendly sidewalks and a 5,500 sf recreation center with resort style pool an kiddie pool, shaded ramadas, parks, gathering areas, pickleball courts and basketball. Close to I-10, 101 and 303. Walking distance to restaurants, movies, entertainment and shopping. Don't miss your opportunity to own this beautifully designed new construction home where luxury meets functionality.

11513 E Utah Avenue Mesa, AZ 85212

$629,990
3 Beds
2.5 Baths
2,506 SqFt
Status Active
MLS # 6708212
Property Type Single Family Residence
Price Type --
''Stunning Suntone floorplan - 3 bedrooms with seperate Den and 2.5 Baths, located in the East Valley's newest community, Destination at Gateway. Discover this inviting home featuring a 4 Panel Center siding glass door off the great room, seamlessly connecting indoor and outdoor living. The kitchen boasts stainless steel appliances, including a 36-inch gas cooktop, built-in wall oven and microwave, along with white and gray shaker cabinets adorned with satin nickel hardware and a convenient trash pull-out. The quartz countertops and tile kitchen backsplash add a touch of elegance to the space. Throughout the home, 8-foot interior doors with upgraded satin nickel door hardware create a modern, cohesive feel. The main areas are adorned with 8 x 36'' wood-look tile and 4 1/4-inch baseboards, providing a stylish foundation for the home. Bathrooms feature upgraded vanity lights and brushed nickel bath faucets, while the primary bathroom offers an enlarged shower and a separate soaking tub for relaxation. With 10-foot ceilings, an oversized laundry room, a separate valet area at the garage entrance, and a paver driveway, this home is designed to offer both luxury and practicality, providing a comfortable and stylish living space for you and your family.

1471 W Saddle Run Apache Junction, AZ 85120

$629,990
5 Beds
3.5 Baths
3,027 SqFt
Status Active
MLS # 6750829
Property Type Single Family Residence
Price Type --
Up to 3% of base price or total purchase price, whichever is less, is available through preferred lender plus additional 2% of base price or total purchase price, whichever is less, is available to be used toward closing costs, pre-paids, rate buy downs, and/or price adjustments. The Prato floor plan is an elegant two-story home featuring five bedrooms, an upstairs loft, and a spacious flex area perfect for an office, TV room, or study. Complete with front yard landscaping, this home will be ready for occupancy by October or November. It is conveniently located near community parks, grocery stores, and restaurants.

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